Data shows a huge variation in success rates in challenging decisions across HMRC departments, writes Andrew Park.
Decisions taken against taxpayers by HMRC vary considerably from things like closure notices, tax and penalty determinations and information notices issued by the HMRC investigative departments forming part of HMRC’s Customer Compliance Group (CCG) though to minor automatic late payment and late filing penalties issued by HMRC’s Customer Service Group (CSG).
Regardless of type, most decisions are appealable in the first instance to HMRC’s Independent Reviewer, but there has previously been limited information about the comparative success rates taxpayers have enjoyed.
A myth has developed in some quarters that it is near pointless making an appeal to the Independent Reviewer because they almost never overturn or vary decisions made by HMRC officers. This is not and was never true, but successful appeals on more technical matters have always depended upon having something new to introduce for the Reviewer’s consideration – be that new relevant facts or further legal arguments. Anything that has already involved advice from HMRC’s technical specialists will inevitably involve the Reviewer reading and following that same advice without something new thrown into the mix. Inevitably, that’s often harder than showing that an automatic penalty was invalidly issued.
Now, for the first time, data we have obtained at the Contentious Tax Group (CTG) shows a comprehensive breakdown of success against HMRC’s various departments over the four years to 2023/24.
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